• 12 months conditional approval¹ so you have time to plan your build.
  • Reduce your outgoings during construction with interest only repayments.
  • Up to 12 months repayment holiday² to help manage your cash flow.

How construction loans work.


You get a valuation

To get a construction loan, you will need a valuation to show what your house will be worth when it's finished.

We review the valuation

We will review the valuation and let you know how much you can borrow.

Payments made in stages

Your construction loan is designed to be paid out in stages, throughout your build. The money is usually paid direct to the builder or supplier, rather than to you and your deposit is used first.

Repaying the loan

During the project you only pay interest on the money already drawn down and you don't start repaying the loan itself until the project is finished. A construction loan is usually on a floating interest rate.

Types of construction loans.

How much can I borrow?

If you need a loan to build a new home, the amount you can borrow depends on the value of your home, your project and your ability to repay the money.

Here are some general guidelines on what you may be able to borrow.

Topping up your loan: up to 90% of your home's current value.

For major building work: up to 90% for fully managed turn key contracts, or up to 65% for labour only contracts.

If you're buying a section with services: up to 75% of the land value.

Depending on the amount you want to borrow, you may need to get valuations at different stages of the project.

A word of caution: cost overruns are common during building work, so keep track of your budget as the project goes on. That way you can make adjustments as you go to make sure you can afford to finish.


Find the best option for you with our home loan calculators.

Get in touch.

Meet with an expert

Our Mobile Mortgage Managers can come to you, when it suits you best.

Find a Mobile Mortgage Manager

Visit us

Make an appointment to talk to a home loan expert in branch.

Find your nearest branch

Things you should know.

Conditional approval requires a credit check and confirmation of the details provided in your application. Other conditions may also apply depending on the nature of your application.

2 No principal repayments will be required and interest costs will be added to the loan. The cost of interest capitalisation will be included in the approved total home loan amount and must not take the total LVR over 90%. The repayment holiday will end on the earlier of 12 months following the initial drawdown or one month following the final construction drawdown.

If lending is over 80% LVR (loan-to-value ratio), it must be a new build with a single fixed price contract that specifies a completed, ready to live in property. Applications must include Master Builders Guarantee or a Certified Builders Guarantee, which includes non-completion cover.

Interest rates are subject to change without notice. Westpac's home loan lending criteria and terms and conditions apply. An establishment charge may apply. A low equity margin may apply. An additional fee or higher interest rate may apply to home loans if the application is accepted but does not meet the standard lending criteria.

Documents and fees

View terms and conditions for all our home lending products here.